MedPlus Q2 FY27: Revenue Surges 21% to ₹2,037 Cr as Net Profit Stays Flat; 166 Stores Added

The Quick Take

• MedPlus Health Services Q2 FY27 net profit rose marginally 0.9% YoY to ₹56 crore despite strong revenue growth
• Revenue surged 21.3% year-on-year to ₹2,037 crore, driven by aggressive store expansion and pharmacy retail volumes
• EBITDA grew 14.1% to ₹170 crore but EBITDA margin narrowed to 8.4% from 8.9% a year earlier
• MedPlus added 166 net new stores in Q2, reaching a total of 5,642 stores as of September 30, 2026

MedPlus Health Services' Q2 FY27 results reveal the classic fast-growth pharmacy retail tension: strong revenue expansion driven by aggressive store rollout alongside compressed margins as the company prioritizes scale over near-term profitability. Revenue grew 21.3% to ₹2,037 crore while net profit barely moved — up just 0.9% to ₹56 crore — as operating leverage from new stores has not yet fully materialized. The EBITDA margin compression from 8.9% to 8.4% signals that new stores require 18-24 months of maturation to reach the chain's average store-level ROCE of 72%, which remains a highly competitive metric in Indian pharmacy retail.

For Indian pharmacy retail investors, MedPlus's store-level ROCE of 72% is a strong metric against peers Apollo Pharmacy, Wellness Forever, and the growing Reliance Retail pharmacy chain. The 166-store net addition in a single quarter is an aggressive expansion pace that dilutes near-term margins but builds the geographic density necessary for last-mile prescription delivery and health product distribution at scale. A store count of 5,642 positions MedPlus as a national challenger with acquisition optionality for hospital groups or health insurance companies seeking distribution scale across India's rapidly expanding healthcare market.

Key signals to watch include MedPlus's Q3 FY27 guidance on EBITDA margin recovery, which will reveal whether operating leverage from mature stores is sufficient to offset new-store dilution; same-store sales growth data that measures whether the core franchise is growing independently of new openings; and management commentary on whether the 72% store-level ROCE is sustaining as newer vintage stores mature. The macro variable is India's healthcare spending trajectory — per-capita pharmaceutical expenditure growth driven by health insurance penetration expansion is the structural demand driver that validates MedPlus's aggressive expansion bet.

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